Other NBA teams are also capitalizing on the James phenomenon. The Cavs have moved from last in the league in road attendance to first. Over 100,000 more fans at NBA arenas outside of Cleveland will see the Cavs play this year. Some teams have bundled the Cavs into multigame ticket packages, encouraging fans to buy tickets to other games if they want to see the Cavs play. In total, by the time he's 25, James should generate $100 million in revenue for other teams from gate receipts, parking, concessions and advertising.

James has been a major catalyst for a 20% jump in NBA-licensed merchandise, to a projected $3 billion this season. His jersey (number 23) is the league's top seller with over 700,000 sold since June. Neil Schwartz, who tracks jersey and sneaker sales at market research firm SportScanINFO, thinks James' jersey sales might approach 1.3 million for the first 12 months. At an average price of $45, that totals $60 million.

In a ripple effect James has made all Cavalier merchandise much more popular. Last year the Cavs were last in the NBA in licensed merchandise sold. This year the team is third, behind the Los Angeles Lakers and Philadelphia 76ers. Total merchandise sales attributable to James for his first seven years should top $500 million.

The company that has bet the most chips on James is Nike. The athletic footwear maker is paying James a minimum of $90 million over the next seven years, more than any other basketball player in history except Michael Jordan. When forced to make his case to the Nike brass about signing James, Lynn Merritt, the Nike marketing executive who spent close to two years building a relationship with James before signing him, said, "We have to spend the money or we'll regret it the rest of our lives."

James' first Nike shoe, Air Zoom Generation, launched in December, and the total rollout is for about 300,000 pairs with a retail price of $110 for adults. Sales of James' sneaker during the first month were 72,000. In contrast, Reebok's top endorser, Philadelphia 76ers guard Allen Iverson, sold only 34,000 pairs of his shoe in the first month. Nike's Merritt says: "LeBron could have a $1 billion-a-year global business."

But for James to maximize his brand value, he must make the Cavs a winner. Says his agent, Aaron Goodwin: "LeBron won't be satisfied until his team is contending for the championship."

If that happens, our $2 billion estimate might just be a lowball figure.

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